As more and more states across the country report thousands of new COVID-19 cases daily, the extra funds made available to support unemployed Americans through the pandemic have expired.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act was passed by Congress in late March, and provided over $2 trillion in direct economic relief to Americans. A portion of these funds were dedicated to enhancing existing unemployment funds, adding a boost of $600 per week to the payments. With this boost expiring, unemployment payments could fall very short for those who are out of work in the wake of COVID-19.
While individual states have their own unemployment funding, the amounts vary greatly by state and may not be sufficient in economically protecting those who need it. In Arizona, the payments can range anywhere from $122 to $240 per week, which leaves many Arizonans short for rent, groceries, and other essential expenditures. These funds are available for 26 weeks per individual in Arizona, but that timeframe can be as short as 13 weeks in some states.
Some states are enacting their own legislation to increase the amount of money available in state-funded unemployment payments; both Hawaii and New Hampshire voted to increase their weekly payments by $100 per week, and Georgia is allowing those receiving unemployment to work part-time jobs as well. Not all states are taking on this issue, however; in Arizona, Governor Doug Ducey rejected proposals by Democrats to increase weekly payments, and instead deferred to Congress’ decision.
While many political analysts expect Congress to extend their unemployment provisions in light of the surge of COVID-19 cases in the US, it could take many weeks before the extension comes. Democrats in Congress are pushing for a continuation of the $600 per week program, while Republicans are vying for assistance in the amount of up to 70% of what an individual made in their most recent job; it’s safe to say that there is significant deliberation ahead before Congress makes a decision.
It is certain that Americans across the country are struggling financially due to COVID-19-related losses, and the enhanced unemployment payments were making a significant difference in the lives of the unemployed during these unprecedented times. While it is likely that Congress will vote to extend their stimulus program, it likely that the party divides will somewhat delay their decision.
CIMA Law Group Blog 